Amid bullish market sentiment, Bitcoin price has dropped below $115,000 today, leading to fear in the crypto market. This unexpected decline comes during a time of sell-offs and an uptick in open interest in the derivatives markets, which has further raised concerns about a potential deeper correction.
At the time of publishing, BTC is trading near $114,839, which is a 2.89% decrease over the past 24 hours. The trading volume in that same timeframe has surged to $88.49 billion, and Bitcoin’s market cap is at $2.28 trillion.
One of the likely reasons behind this decline in Bitcoin price is Galaxy Digital’s transaction of 12,000 BTC across various exchanges in the past few hours. The origin of such funds could potentially be attributed to a Bitcoin whale that had decided to unload in excess of 80,000 BTC ranging from July 15 to July 18. These transfers have resulted in increased selling pressure while uncertainty looms around in the volatile crypto market.
As per Coinglass data, this drop has caused nearly $530 million in liquidation in the past 24 hours. It includes over $380 million in long and $150 million in short positions being wiped out from leveraged crypto markets.
M2 Supply Still Supports Long-Term BTC Growth
Despite the dip and a massive correction risk, analysts remain optimistic while pointing out Bitcoin’s close relationship with the global M2 supply. A chart shared by the analyst from CryptoRank shows that Bitcoin usually tracks M2 trends, even though with a slight delay. The increasing M2 levels have boosted the rise in BTC price since 2024, which hints for Bitcoin reaching a peak nearly $200K in 2025.
The broader liquidity trends currently suggest there’s potential for long-term growth. This current dip seems more like a temporary reaction from long traders who might have overextended themselves, rather than a fundamental shift in the market.
Options Market Signals Growing Trader Activity
According to Coinglass data, there’s been an increase in Bitcoin options open interest. It jumped from less than $1 billion in June 2023 to over $60 billion by mid-2025. This trend shows that institutional and retail traders are getting more involved.
Stronger price swings would be anticipated with increased open interest. Therefore, despite short-term volatility, Bitcoin’s long-term growth remains intact.
Also Read: Bitcoin Whale Wakes Up After 14 Years, Moves $468 Million
